Taiwanese company Foxconn Technology also known as Hon Hai Precision the biggest assembler of Apple’s iPhone have cut around 50,000 contract workers earlier than what is being expected in the main iPhone factory in Zhengzhou, China. The workforce is scaled back due to the slow season production of iPhone according to report of Nikkei’s Asian Review.

The tech giant said that Apple’s iPhone it has a slump in revenue at the end of last year as they struggle with a slow demand, which is far away from what it is expected for the iconic and famous iPhone. Reports also said that 2019 will be difficult for the smartphone market due to the US-China trade war.

The company is about to reduce 200,000 head counts by tens of thousands every month until they reach the target of 100,000. That is 50% cut jobs from the original head count, as they refer it to as the minimum number required for work.

Another Taiwanese company in Pegatron Corporation which is the second largest iPhone assembler behind Foxconn already started canceling monthly labor contracts.

Other key suppliers had to ask 4000 workers to go on a forced leave for six months and the supplier will decide if they will be laid off after the vacation.

Foxconn and Pegatron show reports of sharp decline in monthly revenues in the smartphone department due low and slow demand for consumer electronics. Foxconn has Apple as its top customer which also supplies the needs of HP, Dell, Huawei, Xiaomi, Acer and other global brands.